Suzhou, China, has revealed a new strategy to encourage the adoption of the digital yuan (e-CNY) in an effort to trade around $297 billion worth of the central bank’s currency by 2023.
The municipal officials want to meet the objective via digital yuan transactions involving both citizens and businesses, with the targeted value expected to increase by a factor of six, according to a February 2 article in the Shanghai Securities News.
Residents and businesses in the large metropolis allegedly transacted over $50.5 billion in digital yuan by 2022.
In addition, the city claimed that over thirty million citizens downloaded e-CNY wallets in 2022 and that one million businesses and government agencies accept payments in the digital currency issued by the central bank.
The city’s grand plan will aid the government’s recent initiatives to promote the digital yuan, which have been in the works for a long time. According to Finbold, in April the Shenzhen government intended to give away 15 million digital yuan as part of their CBDC giveaway.
In addition, the People’s Bank of China (PBOC) thinks that the digital yuan may facilitate integration between the currency and traditional e-payment technology. In this instance, the institution saw the need for further rules to facilitate the usage of the digital yuan. Currently, more than 15 cities are investigating the widespread adoption of e-CNY.
Meanwhile, there is growing proof of the digital yuan in applications like payments. During the Chinese New Year, the country’s major online shops saw an increase in the number of customers buying with digital yuan.
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